First Time Home Buyer Journey
Being a first-time home buyer in Grand Junction can be both exciting and overwhelming. Currently, in Colorado, buying a home is a very competitive undertaking given pent-up buyer demand, low mortgage rates and tight housing inventories. As a result, buyers have to be prepared to move quickly once they find the right home. Below are some helpful things to know as a first-time home buyer.
Reach Out to a Realtor
The first step you’ll want to take it to reach out to a local Realtor. Do some research, read reviews, and ask your trusted friends and family for recommendations. Once you reach out to them, let them know you’re just getting started and would like help knowing where to begin! Establishing a relationship with your Realtor is important so they can help guide you through the full process as you’ll be working with several other professionals, including a mortgage lender. If you’re not sure which mortgage lender to use, do a little research, and check with your Realtor to see who they recommend.
Talk to a Mortgage Lender
It can be tempting to jump right into hunting for the perfect house, especially if this is your first time as a home buyer. You should consider getting a mortgage pre-approval before you begin comparing properties so that you know what you can afford. And, this pre-approval will help you to make a stronger offer when you do find the home you want to buy. Sellers need to know that the buyer they choose can afford their home and a pre-approval shows a seller that you have the money needed to purchase the home. A mortgage professional can also guide you through the loan process, including the type of loan that will work best for you (conventional, FHA, USDA, VA).
Determine What You Want to Spend
Before you fall in love with that first beautiful home you see, understand your price range and mortgage payment. A mortgage lender can help you calculate your mortgage payment, including principal, interest, taxes, and insurance. This will allow you to shop for a home and a mortgage with confidence that it will be in a comfortable price point for you.
List Your Must-Haves And Nice-To-Haves
You will want to prioritize which features you want in a home based on your needs and wants. This may include the number of bedrooms, specific schools, if you need a bigger yard or to be located near a park, and also the distance from family and friends. Ultimately, this list will help you shop for homes more effectively and compare properties with less stress.
Understand Earnest Money
Once you identify your dream home, your real estate agent will help you to negotiate a fair price with the seller. Once both parties agree to and sign a contract, as the buyer, you will need to provide an earnest money deposit, also known as a “good faith deposit.” Giving this money to a neutral third-party signals to the owner that you’re serious about the offer. A title company will hold this money in escrow throughout the transaction process.
Know Your Title Company
Most likely, the sellers of the property have selected the title company that will be handling the transaction. Educate yourself on who the title company is and their reputation. A good place to start is to ask your real estate agent or check out ALTA.org.
Title Commitment and Policy
During the transaction, most likely in the first week, the title company will provide a Title Commitment that outlines the details of your Title Insurance Policy. Your real estate agent can help you understand what these documents mean and also put you in touch with a title expert. In a nutshell, this policy serves as a safeguard against outside claims of interest against a property that may arise after a real estate closing.
Get a Home Inspection and an Appraisal
Your real estate agent and lender will guide you through this phase of contractual obligations. When buying a home, you’ll want a professional inspection in addition to an appraisal.
The inspection: During an inspection, the inspector will inform you about real or anticipated concerns with the home. You can use the results of your inspection to learn more about your home, request monetary concessions and/or ask for repairs from the seller. Your real estate agent can guide you through this process.
The appraisal: After an appraisal inspection, your appraiser gives you and your lender a third-party home value opinion.
Utility Transfers
Determine who the utility providers are for your new home by asking your real estate agent, or inquire at the local municipal building or city hall. You will want to contact the utility companies to let them know your move-in date and schedule service at your new home to start the day of closing.
Don’t forget to update your address with your former utility companies (so they can send you a final bill) and with the post office.
Closing Day
Time to sign papers, get the keys, and celebrate! Congrats homeowner!!
If you’re looking for a Realtor to work with who can help you accomplish your goals of home ownership, I’d be honored to visit with you and see if I’d be the right fit to help you on your home ownership journey! Text or call and we can set-up a time to talk!
Information sourced from: www.LTGC.com.
